The US gaming sector, as revealed in a recent study conducted by Oxford Economics, contributes significantly to the country’s economy. The study shows that the industry provides employment to 1.8 million individuals, resulting in $104 billion in wages and salaries. With a direct employment of 700,000 people, the gaming industry generates $52.7 billion in tax revenue for federal, state, and local governments.
The president and CEO of the American Gaming Association (AGA), Bill Miller, emphasizes the long-term growth and impact of the US gaming industry on communities. In addition to generating substantial tax revenue, the industry creates strong job opportunities, supports local small businesses, and funds critical community priorities.
According to the AGA’s study, the gaming industry generated $150.3 billion in activity in 2022. This total includes $125.9 billion in casino spending and $24.4 billion in other spending. The commercial gaming sector contributed $79.9 billion of casino spending, while tribal gaming accounted for $46.0 billion. The study also highlights the inclusion of new online channels like sports betting and iGaming in the total revenue.
The AGA states that gaming activities contributed 83.1% of the casino revenue, while the remaining 16.9% came from non-gaming services such as food, beverage, lodging, and entertainment. The other spending category encompasses catalytic spending, including $13.5 billion spent outside of gaming, $8.3 billion given to paid-to suppliers, and $2.7 billion in capital spending.
Catalytic spending represents money spent by casino patrons outside of their casino trips, which includes $4.9 billion on transportation to the destination and $2.4 billion at restaurants located outside of the casinos. Furthermore, the AGA points out that the gaming sector surpasses industries like aircraft manufacturing or semiconductor industries in terms of size in 2022.
